Cordaid

Social performance measurement systems for microfinance institutions

YEARS

CLIENT DESCRIPTION

Cordaid is one of the largest development organisations in the Netherlands. It strives to support a fair and sustainable society in which people share the "Global Common Goods."

CLIENT'S OBJECTIVE

To develop and implement social performance measurement (SPM) systems for three microfinance institutions (CASA in Bolivia, ASHI in Philippines and SHEPHERD in India) and to facilitate the process within Cordaid to develop and implement its own social performance measurement policy.

Results

BUSINESS RESULTS

The three MFIs produced a public annual report in which they included performance data and evaluation of their social performance management systems.

Cordaid investment officers follow a practical guideline developed by Enclude to evaluate their client MFIs’ level of commitment to social performance management systems, and to assist the MFIs in developing strategies to improve their social performance.

SOCIAL & ENVIRONMENTAL OUTCOMES:

The three MFIs’ social performance reports documented an alignment between their social mission and their results.

Cordaid field officers are better equipped to discuss social performance management with their MFI partners.

Activities

Guided the three MFIs through self-assessments of their social performance management systems.

For each MFI, designed and implemented SPM reporting systems which included selecting essential social indicators, collecting and developing tools for SPM system roll-out.

Facilitated the process within Cordaid to create its own social performance management policy.

Ahon Sa Hirap, a microfinance institution in the Philippines, has integrated social and environmental performance data into its annual report, reflecting Global Reporting Initiative (GRI) Guidelines and setting an example in the sector.

LEARNINGS

Social performance management is a complex concept that is better understood when it is made concrete and practical. This is not only true for microfinance institutions, but also for the investor’s field staff and investment officers responsible for evaluating the MFI’s performance toward their social mission.